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Hospitals Say Payroll Tax Will Hurt

Thursday, May 07, 2009

Hospitals, cultural organizations, and other charities are complaining about the part of the MTA bailout that includes a payroll tax. Many say they’re teetering on the edge of bankruptcy and the new fee won't help. WNYC’s Fred Mogul has more.

REPORTER: With endowments and contributions down and many costs going up, non-profits say the new tax comes at an especially bad time. Ken Raske, from the Greater New York Hospital Association says 34 cents for every hundred dollars of wages might not sound like a lot, but it comes on top of other taxes and pay cuts from the state.

RASKE: In and of itself, sure, it’s not going to break our backs, but it’s additive to all the other things that we’re coping with.

Supporters of the payroll tax say the charge is relatively little, and since all employers benefit from an improved transit system, all should pay it – large and small, private and public, for-profit and non-profit. For WNYC, I’m Fred Mogul.

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